Beginning next year, the Federal Affordable Care Act will require employers to provide coverage to anyone working 30 hours or more per week.

Protesters have accused Walmart and other larger corporations of cutting employees' wages and hours to avoid having to pay the mandated healthcare costs.

The "Walmart Loophole," as labor advocates have dubbed it, forces low-wage workers to go on taxpayer funded state programs like Medi-Cal.

"If Walmart cuts wages and hours so low that their workers can get on public assistance like Medi-cal, then they don’t have to pay the employer penalty if they are not offering affordable healthcare coverage," said Steve Smith of the California Labor Federation.

He said the practice is costing California tax payers $32 million annually.

Protesters at the West Sacramento Walmart delivered a poster-sized invoice to a manager explaining their case.

The protesters are hoping to raise awareness and support for Assembly Bill 880, which would penalizes companies trying to avoid the healthcare provision.

As the labor activists prepare to kick off a state-wide tour of actions, Walmart has released its own statements countering the allegations.

"We're confident in the competitive nature of our wages and our benefits meet or exceed those provided by most other large retailers in California," said Walmart spokesman Steven Restivo.

Walmart defended itself saying the company provides more than one million associates and their families with healthcare plans and affordable, comprehensive medical coverage.

The company said its health care plans continue to exceed the test of affordability and quality of the Affordable Health Care Act.

Protesters said their next stop will target stores in the Central Valley towns of Fresno and Bakersfield.

GOOD MORNING, YOUR TIME AT 6:00. THE HEALTH CARE DEBATE HAS MANY ANGLES. SOME ARE KICKING OFF A STATEWIDE TOUR. WE HAVE BRIAN HICKEY LIVE WITH MORE. LARGE CORPORATIONS LIKE WALMART ARE FORCING EMPLOYEES ONTO THE STATE SYSTEM BY USING THE LOOPHOLE. THERE ARE OTHER COMPANIES ACCUSED OF DOING THIS AS WELL. THEY'RE SAYING THIS IS THE COST OF $42 MILLION TO CALIFORNIANS. THEY'RE WALKING INTO WALMART HERE NEAR SACRAMENTO. THEY ARE TRYING TO GAIN SUPPORT , FORCING EMPLOYEES ONTO THE MEDICARE SYSTEM BY CUTTING WAGES AND CUTTING THEIR HOURS SO THAT THEY FALL BELOW THE THRESHOLD OF THE AFFORDABLE CARE ACT SO THOSE EMPLOYEES QUALIFY FOR THE STATE PROGRAM AND THE COMPANY ITSELF WILL HAVE TO PAY FOR THE AFFORDABLE CARE ACT. THAT IS WHAT THEY ARE ALLEGING THIS MORNING, THEY ARE SAYING THEY'RE FORCING TAXPAYERS TO FOR MEDICAL CARE WHEN THEY BELIEVE MAJOR CORPORATIONS SHOULD BE DOING THEIR JOB PAYING THEIR FAIR SHARE. THIS IS THE MOST PROFITABLE COMPANY IN THE UNITED STATES OF AMERICA. $444 BILION OF REVENUE LAST YEAR. THEY ARE PUSHING THEIR OWN WORKERS ON TO TAXPAYERS. WE FOUND SOME STATEMENTS ON THE WEBSITE REGARDING THIS TOPIC. THEY SAY THERE IS A CHOICE WE MADE WHEN IT COMES TO HEALTHCARE, THIS CHOICE REQUIRES PLANS TO CONSIDER A TRADE OFF OF A COVERAGE MANDATES AND HIGHER TAXES. WE ALSO BELIEVE THAT MANDATE MUST THEIR COMPANY BY A PROVISION THAT WOULD REDUCE HEALTH COSTS AND IMPROVE THE VALUE WE GET FOR OUR HEALTHCARE DOLLARS. THAT STATEMENT IS FROM WALMART CORPORATION. YOU TO THE PROTESTERS HAVE MADE THEIR WAY INTO WALMART, WHERE THEY PROMISE THEY WILL DELIVER ABOUT -- THIS IS THE FIRST STOP OF A STATEWIDE TOUR AS THEY TRY TO GAIN SUPPORT FOR THE BILL A 80, A BILL THAT WOULD CLOSE THE LOOPHOLE AND FIND COMPANIES